Market share is the percentage of total sales in an industry generated by a particular company. It is calculated by taking a companys sales over a period and dividing it by the total sales of the industry over the same period. Market share is a key indicator of a companys competitiveness and is used to give a general idea of the size of a company in relation to its market and its competitors. A market leader is a company in an industry that has the highest market share and generally wields the most influence. Increasing market share is one of the most important objectives of business. The main advantage of using market share as a measure of business performance is that it is less dependent upon macro environmental variables such as the state of the economy or changes in tax policy. An increase in a companys market share can allow the company to operate on a greater scale and increase profitability. It also helps the company develop a cost advantage compared to its competitors. An increase in market share also helps boost a companys total sales.